Summary: COBRA costs about $793 a month for single coverage and about $2,294 a month for family coverage at national averages, because you pay 102 percent of the total premium your employer used to split with you. This guide explains the 102 percent rule, shows the math for common situations, and tells you exactly what to ask HR to get your real number instead of the average.
COBRA's price shocks everyone the first time. You paid $120 a month out of your paycheck, and now the same plan costs $793. Nothing changed about the coverage. What changed is who pays: COBRA makes you the employer and the employee at once, plus a 2 percent administrative fee for the privilege.
This guide prices COBRA from the national averages, then shows you how to replace the average with your employer's actual premium, which is the only number that matters for your budget.
National averages hide wide variation. Your employer's premium reflects its workforce age, location, plan generosity, and insurer negotiations. A tech firm with a young workforce in Texas might have a $650 single premium where COBRA costs $663; a manufacturer with an older workforce in New York might have a $1,100 premium where COBRA costs $1,122. Both are normal.
Plan tier matters too. If your employer offered a base plan and a buy-up plan, your COBRA options mirror what you were enrolled in, and you can sometimes switch tiers at open enrollment while on COBRA. Ask the administrator whether tier changes are allowed; the rules permit it but plan documents vary.
Federal law lets employers charge COBRA beneficiaries up to 102 percent of the total premium: the full premium cost plus a 2 percent administrative fee. The total premium is the number your employer and you split while you were employed. If the total was $777 a month and you paid $120, COBRA charges you $793.
The 2 percent is the employer's handling fee for administering your continued coverage. Some employers charge less than the full 2 percent, but almost none charge less than 100 percent of the premium. Budget for the full 102 percent.
The KFF 2025 survey puts the average total premium for single coverage at $9,325 a year. Times 1.02 is $9,511.50 a year, divided by 12 is $792.63 a month. The average employee used to pay $1,440 a year, or $120 a month, so COBRA is about 6.6 times the old deduction.
Your employer's premium may differ substantially. Small firms and firms with older workforces pay more; the range around the average is wide. The $793 figure is a planning anchor, not your bill.
Family coverage averages $26,993 a year in total premium. Times 1.02 is $27,532.86 a year, or $2,294.41 a month. The average employee share was $6,850 a year ($571 a month), so COBRA runs about 4 times the old deduction. Family COBRA is where the marketplace comparison becomes urgent: $2,294 a month is $27,500 a year, well above what subsidized marketplace coverage costs most households.
If only some family members need continued coverage, you can elect COBRA for individuals rather than the whole family. Each qualified beneficiary has an independent election right, so a spouse with their own options can decline while you continue.
Ask HR or the plan administrator for two numbers: the total monthly premium for your tier, and the COBRA administrator's contact information. The total monthly premium times 1.02 is your COBRA premium. Get it in writing or in the COBRA election notice, which the plan must send within 44 days of the qualifying event.
Also ask about the payment mechanics: where to send payment, the grace period (usually 30 days for subsequent payments, 45 days for the first), and what happens if a payment is late. COBRA can be terminated retroactively for nonpayment, so the admin details matter as much as the price.
The COBRA premium buys the insurance, not the care. You still pay the plan's deductible, copays, and coinsurance exactly as before. If you were $1,000 into a $3,000 deductible when coverage ended, COBRA preserves that progress; a new marketplace plan would restart the deductible at zero. Price the deductible progress alongside the premium when you compare options.
Dental and vision continuation are usually offered separately under COBRA at their own premiums. They are often cheap enough to keep, but evaluate them independently rather than bundling the decision.
Multiply the monthly premium by the months you need, and add it to your emergency fund math explicitly. Twelve months of single COBRA is about $9,500; eighteen months of family COBRA is about $41,300. These are not rounding errors in a job-loss budget; they are often the second-largest expense after housing.
Set calendar reminders for payment due dates and for the 60-day election deadline. The most expensive COBRA mistake is not the premium; it is missing a deadline and losing the option entirely.
About $793 a month at 2025 national averages (102% of the $9,325 average single premium). Your employer's actual premium decides your bill.
You pay the entire premium your employer used to split with you, plus 2%. The average employee paid 16% of the single premium; COBRA charges 102%.
No, for the standard 18-month period. In the 11-month disability extension, plans may charge up to 150% of the premium.
The coverage is identical; the price is not. Same plan, same network, same deductible progress, at the full premium plus 2%.
Premiums: KFF 2025 Employer Health Benefits Survey. COBRA rules per federal DOL guidance. This guide is for planning only.